1. Contract, Corporate & Cooperative Farming
A session conducted in the workshop on public-private partnership at EEI, Jorhat by Prof. A. K. Das, Jt. Registrar, AAU

2. Farm & Farming
Farm: An area of land & building under single management for growing crops and raising livestock
Farming: The act of growing crops & raising livestock embedded with inherent personal, managerial & capital requirements (liking, knowledge, initiative, ambition, managerial ability & business judgement)

3. Business entities
Coordination of the factors of production in working units
Characterized by:
Division of labour
Necessary materials, lay out, appointment & mgt.
purchase & sales including speculative possibilities
Finance & accounts
Risks of enterprize

4. Farming as a Business Primary forces of production
Size of production unit
Dependence on climatic factors
Frequency & speed of decision
Changes in prices
Standardization of practices

5. Farming as a Business contd.
Rate of turn over
Financing
Inseparable home & farm business
Nature of variable and fixed cost
Demand for farm products
Time rigidity in consumption of agricultural products

6. Business Types The single entrepreneurship system The partnership
The company or corporation
Co-operation

7. Public Private Partnership
A business relationship between a private sector company and a Government agency for the purpose of completing a project that will serve the public
PPP can be used to finance, build & operate projects

8. Contract Farming
A form of vertical integration where the farmer is contractually bound to supply a given quantity and quality of product to a processing or marketing enterprize

9. Tenets of Contract Farming
The buyer agrees in advance to pay a certain price to the farmer and often provides technical advice and inputs
However, it has not resulted in a significant improvement in the livelihoods of small farmers in developong countries

10. Co-operative Farming
Provides a method for farmers to join together in an association, through which a group of farmers can acquire a better outcome, typically financial, than by going alone.
The approach is aligned to the concept of economies of scale

11. Corporate Farming Often used synonymously with agri-business
A fairly broad term that deals with the general practices & effects of a small no. of large, global corporation that dominate the food industry

12. Corporate Farming: The Connotations
A system for prod/supply of Agri/horti produce under forward contract between producer/supplier & buyers
Essential to this is the commitment of the producer/seller to provide the agri/horti commodity of a certain type, at a specified time and a price and in the quantity & quality reqd. by the known & committed buyer

13. Initiative of Corporate Farming
National Agric. Policy of GoI announced in 2000 envisaged that private sector participation in Agri shall be promoted through contract farming & land leasing arrangements to allow accelerated technology transfer, capital flow & assured markets for crop production

14. Reasons of Corporate Farming
Consolidation of small farm lands into larger land holding
Increase in agric. productivity
Introduction of value-added products

15. Arrangements under Corporate Farming
Farmer/producer is reqd. to plant contractor’s crop in his land, harvest & deliver a quantum of produce
He is reqd. to provide land & labour necessary for this, & the contractor is to supply all inputs

16. Farm + Corporate: A New Supply Chain in India
Collaborative partnership
Oilseeds, cotton & horticulture
New agri-business
Knowledge intensive farming
Better solution for farm related problems
More opportunities

17. Family Farming
A farm owned & operated by a family and passed down from generation to generation in developing nation
In developed countries, the family farm is viewed sentimentally, as a lifestyle to be preserved for tradition’s sake

18. Why family farm disappearing ?
Today’s prices are driving farmers out of business
No matter how hard they work, someone else controls the life of a farmer
A farmer is a price-taker, not setter

19. Difficulties in Family Farming
Farming is not an easy job. Fighting the weather is a constant situation. Insect-pest attack is yet another threat
Farming is a huge gamble. Their livelihood is in jeopardy constantly

20. Why are family farms important ?
Provide wealth of benefits by producing fresh, nutritious, high-quality foods
Serves as responsible stewards of the land
Its existence guarantees the preservation of green space within the community

21. Corporate Farm vs Family Farm
A corporate farmer is usually a contracted employee, rather than the owner of the farm
However, ownership itself does not mean independence. An owner-operated farm today faces many constraints that are completely out of the owner’s control

22. Benefits of Corporate Farming
Increase in output
Reduces fragmentation
Increased export performance
Due to rapid technological development & large scale global production management there is an unprecedented abundance of inexpensive, widely available, attractive safe food

23. Limitations It makes farmers landless Undermine local production
Failure of corporate farming in many countries

24. The Business Giants:
PEPSICO (Punjab & Karnataka: food, basmati rice soft drink concentrate)
Anil Dhirubhai Ambani Group (Punjab: fruits & vegetables)
Vimal Dairy (Gujarat: milk for captive consumption)

25. To cite from Sharad Joshi
The state should facilitate the exit of small and marginal farmers from farming by buying their land at market prices and provide them capital and training to go for non-farm occupations.

26. Please ponder over …
Only those who have the mindset, technology management, and financial resources to face the challenge of the Second Green Revolution should be permitted to do farming as an agribusiness.

27. Thanks